Joe,
Following on from what Michael said above, are your Adwords ads sending traffic to your homepage?
If they are, then I suspect that your quality score will be lousy (obviously you can see that value whilst we cannot.
If it is poor, it may be worth, as Simon says, stopping the Adwords campaign.
In the meantime, add a highly optimised page to your site and point a brand new (not amended) campaign at this.
If people click on an ad saying "carpet cleaning norwich" they expect to land on a page about that.
That way you should start with a much better quality score (which, allied to your bid price and click through rate) should get you more clicks for a lot less money.
Another point Simon makes is don't throw money at daft things like directories, no matter how tempting they sound. It's easy to think "Oh if I only get one job from XXXXX". Most times you will get zero return.